Coca-Cola (KO) Q3 2026 Earnings Report

The call was strongly positive overall. Highlights significantly outweighed the challenges, with 5% unit case growth, 7% organic revenue growth, consecutive global value share gains, margin expansion, double-digit comparable earnings-per-share growth, strong free cash flow, and raised 2026 guidance. Management nevertheless acknowledged uneven market conditions, cost pressures, unfavorable mix, regional share and volume challenges, destocking, calendar effects, and pending legal and divestiture-related items.

For full year 2026, Coca-Cola now expects organic revenue growth of at least 5%, comparable currency-neutral earnings per share growth, excluding acquisitions and divestitures, of at least 9%, comparable earnings per share growth of at least 11% versus $3 in 2025, and at least $13 billion of free cash flow; divestitures are expected to be an approximate 2% headwind to comparable net revenues and an approximate 1% headwind to comparable earnings per share, while currency is expected to provide an approximate 1-point tailwind to comparable net revenues and an approximate three-point tailwind to comparable earnings per share, with an underlying effective tax rate of 19.7%. For the fourth quarter, the company expects six fewer days, slight destocking, a four-point headwind to comparable net revenues, a three-point headwind to comparable earnings per share, and slight margin benefits following the anticipated refranchising of CCBA. For 2027, it is too early to provide specific guidance, but the company expects consumer behavior to remain largely unchanged, targets 2-3 points volume and 2-3 points price mix, expects modest expansion in underlying gross margin, an eight-point headwind to comparable net revenues and a two-point headwind to comparable earnings per share from the anticipated refranchising of CCBA, and, based on current rates and hedge positions, a slight headwind to both comparable net revenues and comparable earnings per share.